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If the car you donate is sold for less than $500, it is up to you to determine the fair market value as long as the figure is below $500. The tax receipt that the charity is required to send you will be less detailed and will merely acknowledge your donation. The information included on the tax receipt will be your name, the date of the donation and a brief description of the vehicle.
The simplification of the laws concerning car donation tax deduction is good news for charities. As more people realize the good their car donation can do for others and the ease in which you can itemize your car donation tax deduction, they will be eager to help. Spread the word so that more people donate more cars to help even more people.
* A statement that no services or goods were made available to you in return in your donation
* A description and value any kind of services or goods had been presented to you in turn in your donation
* A statement that this goods or services presented to you consisted entirely of intangible religious benefits
Further documentation and filing requirements may pertain to claiming a deduction to your car donation. If your contribution may be valued at in excess of $500, you might need to check along with your accountant to see the easiest way for you to contribute your car to charity.
What About Title and Registration?
In most cases you will want to transfer the car title to the charity you’re making the donation to. Make a copy of the title transfer and make sure your registration information on file in with your State is updated to reflect the transfer. And finally, remove your license plates from the vehicle you are donating, this can help you avoid future liabilities following the title transfer.
In case you followed those things your vehicle donation will qualify you (in almost every case) to have a Fair Market Value Tax Deduction in your next tax return. We have a deep knowledge of the tax regulations and understand how to manage your automobile donation to get you the greatest tax break, which means that your own generosity and convenience would really put cash back in your pocket next year!
We have managed to make it simple for you to donate your car and revel in these benefits. A car donation can get you on your journey to tax savings, and great personal satisfaction. You won’t need to pay attention to a timeshare sales agent, you won’t have to deal with fixing and selling your vehicle, and you’ll have all you need for the IRS!